QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
−Removed: We are subject to certain risks that may affect our results of operations, cash flow and fair values of assets and liabilities, including volatility in foreign currency exchange rates, interest rate movements and equity price exposure as well as changes in economic conditions in the markets in which we operate as a result of the COVID-19 pandemic and the conflict in Ukraine.
−Removed: We manage the impact of foreign currency exchange rates and interest rates through various financial instruments, including derivative instruments such as foreign currency forward contracts, interest rate lock contracts and interest rate swap contracts.
+Added: We are subject to certain risks that may affect our results of operations, cash flow and fair values of assets and liabilities, including volatility in foreign currency exchange rates, interest rate movements and equity price exposure as well as changes in economic conditions in the markets in which we operate as a result of the conflict between Russia and Ukraine and the military conflict in the Middle East.
+Added: We manage the impact of foreign currency exchange rates and interest rates through various financial instruments, including derivative instruments such as foreign currency forward contracts, foreign currency options, interest rate lock contracts and interest rate swap contracts.
We do not enter into financial instruments for trading or speculative purposes.
2 unchanged sentences
Our results of operations are subject to foreign currency exchange rate fluctuations due to the global nature of our operations.
−Removed: As a result, our consolidated financial position, results of operations and cash flow can be affected by market fluctuations in foreign currency exchange rates, primarily with respect to the Euro, British pound sterling, Canadian dollar, Swiss franc and Japanese yen.
+Added: As a result, our consolidated financial position, results of operations and cash flow can be affected by market fluctuations in foreign currency exchange rates, primarily with respect to the Euro, British pound sterling, Canadian dollar and Swiss franc.
While the financial results of our global activities are reported in U.S.
5 unchanged sentences
The impact to net income as a result of a strengthening U.S.
−Removed: dollar will be partially
−Removed: Table of Conten ts
−Removed: mitigated by the value of non-U.S.
+Added: dollar will be partially mitigated by the value of non-U.S.
expense, which will also decline when reported in U.S.
4 unchanged sentences
This categorization did not have a material impact on our results of operations or financial position as of December 31, 2023, and is not expected to have a material impact on our results of operations or financial position in the future.
+Added: In December 2023 the Argentinian Peso experienced a substantial devaluation following a presidential election.
+Added: The devaluation resulted in a $16.0 million charge recorded
+Added: T able of Contents
+Added: during the fourth quarter of 2023 in other (income) expense, net within our consolidated statements of income for the year ended December 31, 2023.
REVENUE AND OPERATING EXPENSE HEDGING PROGRAM
Our foreign currency hedging program is designed to mitigate, over time, a portion of the impact resulting from volatility in exchange rate changes on revenue and operating expense.
−Removed: We use foreign currency forward contracts and foreign currency options to manage foreign currency risk, with the majority of our forward contracts used to hedge certain forecasted revenue and operating expense transactions denominated in foreign currencies in the next 12 months.
+Added: We use foreign currency forward contracts and foreign currency options to manage foreign currency risk, with the majority of our forward contracts and options used to hedge certain forecasted revenue and operating expense transactions denominated in foreign currencies in the next 12 months.
We do not engage in currency speculation.
6 unchanged sentences
The primary objective of our balance sheet risk management program is to mitigate the exposure of foreign currency denominated net monetary assets and liabilities of foreign affiliates.
−Removed: In these instances, we principally utilize currency forward
+Added: In these instances, we principally utilize currency forward contracts.
We have not elected hedge accounting for the balance sheet related items.
10 unchanged sentences
The potential change in fair value for interest rate sensitive instruments has been assessed on a hypothetical 100 basis point adverse movement across all maturities.
−Removed: As of December 31, 2022 and 2021, we estimate that such hypothetical 100 basis point adverse movement would result in a hypothetical loss in fair value of approximately $11.7 million and $14.3 million, respectively, to our interest rate sensitive instruments.
+Added: As of December 31, 2022, we estimate that such hypothetical 100 basis point adverse movement would result in a hypothetical loss in fair value of approximately $11.7 million to our interest rate sensitive instruments.
The fair values of our investments were determined using third-party pricing services or other market observable data.
+Added: We partially funded our Reata acquisition through available cash, cash equivalents and marketable securities.
+Added: As of December 31, 2023 , we have sold all of our marketable debt securities.
+Added: For additional information on our acquisition of Reata, please read Note 2, Acquisitions , to our consolidated financial statements included in this report.
+Added: T able of Contents
Financial instruments that potentially subject us to concentrations of credit risk include cash and cash equivalents, investments, derivatives and accounts receivable.
3 unchanged sentences
We minimize credit risk resulting from derivative instruments by choosing only highly rated financial institutions as counterparties.
−Removed: Table of Conten ts
−Removed: We operate in certain countries where weakness in economic conditions, including the effects of the COVID-19 pandemic and the conflict in Ukraine, can result in extended collection periods.
+Added: We operate in certain countries where weakness in economic conditions, including the effects of the conflict between Russia and Ukraine and the military conflict in the Middle East, can result in extended collection periods.
We continue to monitor these conditions, including the volatility associated with international economies and the relevant financial markets, and assess their possible impact on our business.
12 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.